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Strategy Enterprise and Innovation for Grab: Key Drivers of Innovation, Strategy Frameworks, and Blue Ocean Strategy

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Added on  2023/06/15

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This report discusses the success of Grab, a leading mobile technology and transportation company, and its innovative approach towards operating the business activity. It highlights the key drivers of innovation contributing to the success of Grab, appropriate strategy frameworks for the company in order to shape its entrepreneurial vision and business, and critically evaluates the statement that Grab’s success can be attributed to the successful application of the “Blue Ocean strategy.”

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Strategy enterprise and
innovation

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Table of Contents
Introduction......................................................................................................................................3
The key drivers of innovation contributing to the success of Grab........................................3
Strategy frameworks...............................................................................................................5
Critically evaluate the following statement: Grab’s success can be attributed to the successful
application of the “Blue Ocean strategy.”..............................................................................8
Conclusion.....................................................................................................................................11
References .....................................................................................................................................13
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Introduction
Innovation is one of the leading factor for every business in order to get success in
market. The effective innovative strategy succours in getting the first mover advantage as well as
increase the productivity and efficiency of organisation. Companies that focus on innovation set
their operations in different paradigm and aim to address a specific economy need. Through this
initiative organisation creates the great value and operational activity in the economy that gives
the competitive advantage as well as enhance the companies revenue. In this given report GRAB
which is a leading technology company is being taken into the consideration.
GRAB is one of the most leading mobile technology and transportation company that
solely focuses to fulfil the everyday demand through their effective technology services. It was
founded by Anthony tan and Tan Hooi ling in 2012 in Malaysia. The mentioned company
established its business in across 8 countries that shows the strong market presence. By their
innovative approach and strategies in their business model increased the safety as well as
convenience in transportation (Braun, Latham, and Cannatelli, 2019). They also providing the
mobile payment platform and other unique ventures that attracted several big capital investment
funders towards investing in their business. Hence, in this mentioned report several framework
and models will be highlight of GRAB that shows their effective innovative approach towards
operating the business activity.
The key drivers of innovation contributing to the success of Grab
The innovative key drivers are one of the most reliable practice that supported the
business in market by enhancing the business operations as well as gain the competitive
advantage. Some of the major innovative key drivers that play a vital role in success of grab
business were effective technology, usability, strategic orientation, Demographics. By taking the
considerations of all these key elements Grab create the opportunity for its business and attracted
the large number of audience towards its business operations. According to the above provided
case study the mentioned company uses these key drivers that created the wealth for Grab.
Technology- One of the most factor that played the major role In grab success was
technology. Its super attractive and feature loaded super app That completely focuses in
order to fulfil everyday demand of peoples in south-east Asia market. The mentioned
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company formed the super reliable app that actually focused on its user and formed the
accessible app (Albelbeisi, Norhashim, and Ojo, 2021).
Demographics- The mentioned company solely focused on the local market and perform
several steps that other competitors lacked. Through hyper localisation Grab collected
the specific information regard to the market demand and formed their business strategy
according to requirement. Grab has one of then most drivers in the south-east Asia region
that almost covers all the local areas in the territory. This stats shows the strong market
presence of company and market share of the company. Their unique approach gives
them the competitive advantage. The mentioned company generally follow the concept of
partnership and joint venture that gives the advantage in order to adopt the market much
more faster than its competitors. By this UBER which was heavily invested in the south-
east Asia market was completely acquired by the Grab in 2018.
Uniqueness- According to the case study The mentioned company launched a unique
social impact with partnership with Microsoft through which they solely focused in
empowering the peoples through improving their digital skills and literacy rate. They
aim to to bring the literacy rate over 3 million people in south Asia by 2025. The
mentioned company also helped the 1.7 million in opening the bank accounts. Through
this initiative the cashless usage were enhanced by 9 times at its online platform. Hence
all of the above approach shows its effective current and future Practice towards bringing
the change in economy as well as create the strong brand image in market (Brink and
Esselmann, 2020).
Strategic orientation- The mentioned company truly focused into crate the effective
strategic approaches in its business through which they can easily grab the market
attention towards their business operations. Through focusing on hyper logical business
strategic and developing strong business partnership helped the mentioned company in
order to established the strong market presence. The mentioned company supported by
huge funding that helped them into take the innovative steps in south-east Asia market.
All of the above elements shows that Grab has strong market acquisition through its
innovative and strategic approaches in business activities (Khoo, 2020). The mentioned company
company invested also invest in research and development program through which they easily

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developed the strong operational activity as well as acquired several assets of it as competitor
Uber.
Appropriate strategy frameworks for the company in order to shape its entrepreneurial vision and
business
Strategy frameworks
Business unit
Grab gains popularity during the pandemic due to digital era which provides wide range
of services which focuses on offering best customer experience to make them feel special. Being
the main company in the technology and transportation sector which provides various services
such as carpooling, personal cars, taxis, last-time delivery, food delivery, grocery delivery,
financial services, mobile payments or ride-hailing (Daou, et. al., 2020). As per the case study
which mentioned a company named Grab has used different strategic frameworks so that it can
shape its entrepreneurial vision and business. Grab is making people's life more convenient in
the riding experience. The management present in the company is using PESTEL Analysis in
order to measure the external environment of business further dividing into different factors such
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as Political, Economic, Social, Technological, Environmental and Legal factors. The various
factors are described as follows-
Political factors- Grab is currently operating in different countries that's why it has to
understand the government policies which can affect the business. Such as tax policies or
trade restrictions. Grab's working depends upon the operations of other states which can
impact the core operations of the company.
Economic factors- The economic factors are inflation, economic growth rate, interest
rate and many others. Grab also provides job opportunities for the people. Moreover, the
tourists travelling to the different countries such as China, South Korea, Indonesia,
Singapore and many others which affected the demand for ride-hailing services. The
company also started the applications in Chinese language to serve Chinese customers
better with the help of using marketing tools to provide better experience (Drobyazko, et.
al., 2019).
Social factors- As the cultural and demographic trends of society affects the operating
operations of the Grab such as during pandemic, online payment and delivery demand
increased. It led to elevate the digital transformation and new shopping habits due to
pandemic the buying habits of people has changed. Such as fuel efficiency, lifestyle,
price options and better life quality.
Technological factors- Factors which focuses on technological innovation and
development, automation, mobile technology, research and digital technology. The new
innovations which are made in the company to enhance the technological development.
The number of internet users are getting increased in case of Grab, it can attract more
users due to the availability of the digital platform such as Mobile Applications and e-pay
functions which the company is already providing.
Environmental factors- The factors deals with the surrounding of the environment with
the impact of ecological aspects. Grab can take care of environment by planting trees and
by reducing the carbon emission by setting a fix carbon offsetting program to reduce the
carbon emission. Grab can also make use of transports which have a eco-friendly
approach. Moreover, it can keep customers updated by reducing the rides while using
Evs.
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Legal factors- When government introduces legislature that create an impact on the
operating of business. Grab should be aware of the various employment acts, consumer
protection laws, industry regulation and regulations. The data privacy should also be
considered in order to protect the data of customers which is available on their platform.
Therefore, the company should create a consent from the customers to get the permission
top access the customer's data.
Competitive Force
The management present in the company is also using Porter's Generic strategy in order
to achieve the competitive advantage over the competitors. Various strategies are as follows-
Cost Leadership Strategy- This strategy helps the Grab to sell its services at the average
market to earn a profit which can be higher than the profits of competitors. This also
allows to the company to maintain the level of profitability with the lowest cost of
operation in the industry (Kasemsap, 2018).
Differentiation Strategy-This strategy allows to focus on the development of the
product or service which are valued by the customers.
In reference to Grab, the company offers unique services which are valued by the
customers. Proper differentiation strategy requires a proper research work and innovation
so that the company can deliver better services which can be more attractive than services
of competitors. It also allows the company to adopt new and innovative which can
emphasise through Moreover, by using the proper techniques of marketing that would
help in understanding the benefits provided by the company.
Cost Focus Strategy-This strategy focuses on a narrow segment which either targets on
differentiation or cost advantage. Grab is focusing on the key features of the services
which allows to attract the customers on the basis of price. It also aims to present and
offer the low prices so that it can attract more customers (Kasemsap, 2018). Grab has
smartly managed the operational cost of the business which directly lead to reduce the
price of the service. Grab makes the customers feel that they are getting bargain with
same quality and the customers will be more attracted towards the services.
Differentiation Focus Strategy- It allows the business to add unique features to the
different services so that it can fulfil the requirements of customers in the marketplace. In
case of Grab, it has a differentiated ways of services and it keeps innovating the

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objectives to serve better. By adopting the differentiation focus strategy the company is
focusing on the narrow market coverage which will seek only to attract the small and
specialised segment.
Critically evaluate the following statement: Grab’s success can be attributed to the successful
application of the “Blue Ocean strategy.”
Blue Ocean Strategy
Blue Ocean strategy is referred to the strategies for innovation in a business environment
with low or few competition. This strategy provides with additional values with creating a new
market space and generating fresh and new demand for the innovative products and services.
Initiatives and efficient efforts with Blue Ocean Strategy develops irrelevancy with competitors
and enforces expansion in market boundaries with innovation and creativity. These strategies
also involves minimising the cost for the unique and differentiated products and services. Blue
Ocean strategy is applied in a company's functioning when the company is willing to develop an
innovative and new product or service (HONG, 2018). The Strategy is a step-by-step process
comprised of data, differentiation and lowering cost, empowerment through tools and
framework, strategic execution, and many other contexts.
Grab has been immensely supported by the Blue Ocean Strategy in its success and
growth journey. This strategic planning allowed company in establishing its business units with a
wide range of business activities providing innovative products and services. This diversified
business portfolio is comprised of taxi-hailing, mobile payments, food and grocery delivery, etc.
As per data provided in case study, it could be reflected that from developing an taxi-hailing app
named as “My Teksi” in 2012 in Malaysia to establishing their presence in 339 cities within 8
countries across South-east Asia. Blue Ocean Strategy has promoted Grab's innovative and
creative business ideas into execution and regulation for long run on its success path. The
company has been indulged in developing innovative products and services as solutions for
problems faced by society and generating demand for the same. South-east Asian economy being
on a accelerated growth has an huge involvement of Grab's financial services in being fourth-
largest economy by 2030 (Khoo, 2020).
Blue Ocean Strategy Canvas and Value Curves
This Strategy Canvas is a graphical representation with horizontal and vertical axis
containing different aspects. Horizontal axis representing competing factors in an industry where
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as vertical axis representing level of offering to the buyers across these competing factors. This
strategic canvas is serving two motives which are as follows:
determining competing factors involved in the market space and major strategies of big
market players for better understanding of users.
It allows users to execute action by reorienting their strategies and shifting focus from
customers to non customers and competitors to alternatives (Braun, Latham, and
Cannatelli, 2019).
Illustration 1: STRATEGY CANVAS: 2021
(Source: STRATEGY CANVAS: 2021)
Major competitors for Grab operating in the super-app industry are Go-Jek, Uber, Lyft,
etc. These rivals operate in the market space providing their services and putting consistent
efforts for betterment and achieving dominance over competitors. The competition between these
companies is for both consumers as well investors for growth as well as expansion in sectors
ranging from taxi-hailing, food delivery, grocery delivery, financial services, etc. There are
various competitive factors for competition in the market place which are as follows:
Factors Grab Other competitors
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Price Ranked 2nd in pricing factor
among major competitors in
the market
Lesser affective prices as
compared to Grab
Usability Most used products and
services in company's
particular sector in the year
2019 after acquiring $700
million assets and operations
of major competitor Uber.
Quite less usability in the
market as of Grab's services
Brand Image Highly efficient brand image
with launching and
implementing programme of
“Grab for Good” social impact
in 2019 (Albelbeisi,
Norhashim, and Ojo, 2021).
Upright brand image but
competitively lower than Grab
Customer Service Highly satisfied customer base
with efficient products and
services provided according to
consumer's convenience
Quality customer services but
Grab being first preference
Product/Service Quality Top quality products and
services provided at affordable
prices with various safety
precautions for welfare of
customer base.
Good quality products
Price :- Grab is providing their services over attractive and efficient prices to their
customers in the market space. This factor allows company in attracting various
customers for using their products and services in their routine and schedules for better
efficiency. Major competitor Go-Jek is the only company ranked above Grab in terms of
pricing.

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Usability :- The company has acquired a major investment of market competitor Uber of
amount $700 million comprised of various assets and operations in 2018. This has
resulted in being a positive aspect for usability of company's products and services over
major competitors in the market. Market expansion of company lead it in being
customer's first preference over competitors (Brink and Esselmann, 2020).
Brand Image :- Grab has a top quality brand image with quality services with
affordable prices and maximum reach among other competitors in the market. Go-Jek
has been reported as top of the table in terms of Brand image with major market captured
and maximum market share.
Customer Service :- Customer service is one of the main highlights for Grab as it
initiates immense efforts towards satisfaction of their customer base. The company has
competitive advantage over competitors with highly satisfied customer base.
Product Quality :- The products and services provided by Grab in the market place are
customer's priority preference as it serves best quality services among major competitors
dealing in the same industry. Other major competitors also provides quality services but
still Grab tops the Ranking in terms of customer preference and product quality.
Conclusion
From the analysis of above report it can be clearly said that innovation plays a major role
in success of every business operations. Through this approach the organisation can get the first
mover advantage as well can establish the strong brand image in the competitive market. In
above case study the innovative effective strategy of Grab has helped the mentioned company in
establishing their name in south-east Asia. By the implementation of such approach in their
business they formed they get the competitive advantage as well as created the strong customer
base towards using their functions. Further several approaches were specified that created the
favourable business condition for given company through which they shaped their
entrepreneurial vision. They formed the several strategy by which they developed the marketing
plan scenario. Their future vision in regard to enhance the economy as well as business models
emphasised their activities as well generated several new opportunity for their future business
operations.The assessment is concluding the major success factors of Grab with the application
of Blue Ocean strategy in innovation into diversification. Furthermore, comparison of the
company with major competitors is provided for better understanding of unique elements of
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company. The report determines that Grab is oriented with the objective of expansion and
growth considering various ways and strategies. It has made a major contribution in expanding
market boundaries with the introduction and execution of various innovative business ideas into
market. Grab is a leading company in ride-hailing as well as other industries it operates in and
also customer's priority preference with quality services and customer satisfaction.
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References
Books and Journals
Albelbeisi, M.S., Norhashim, M. and Ojo, A.O., 2021. Competition In Ride-Hailing Industry.
Braun, M., Latham, S. and Cannatelli, B., 2019. Strategy and business models: why winning
companies need both. Journal of Business Strategy.
Brink, A. and Esselmann, F., 2020. Value Positioning and Business Ethics: Keeping Promises as
Business Legitimation. Handbook of Business Legitimacy: Responsibility, Ethics and
Society, pp.297-309.
Daou, A., Mallat, C., Chammas, G., Cerantola, N., Kayed, S. and Saliba, N.A., 2020. The
Ecocanvas as a business model canvas for a circular economy. Journal of Cleaner
Production, 258, p.120938.
Drobyazko, S., Barwińska-Małajowicz, A., Ślusarczyk, B., Zavidna, L. and Danylovych-
Kropyvnytska, M., 2019. Innovative entrepreneurship models in the management system
of enterprise competitiveness. Journal of Entrepreneurship Education, 22(4), pp.1-6.
HONG, S.D., 2018. RIDE-HAILING AND DIGITAL DISRUPTION.
Kasemsap, K., 2018. The role of information system within enterprise architecture and their
impact on business performance. In Global Business Expansion: Concepts,
Methodologies, Tools, and Applications (pp. 1078-1102). IGI Global.
Khoo, K., 2020. Anti-Competitive Mergers in Two-Sided Digital Platform Markets: The Case of
Uber-Grab. Available at SSRN 3712823.
Kickul, J. and Lyons, T.S., 2020. Understanding social entrepreneurship: The relentless pursuit
of mission in an ever changing world. Routledge.
Mani, Z. and Chouk, I., 2018. Consumer resistance to innovation in services: challenges and
barriers in the internet of things era. Journal of Product Innovation Management, 35(5),
pp.780-807.
Mongkol, K., 2021. A comparative study of a single competitive strategy and a combination
approach for enterprise performance. Polish Journal of Management Studies, 23(2),
p.321.
Saltz, J., 2018, January. Identifying the key drivers for teams to use a data science process
methodology. In 26th European Conference on Information Systems, ECIS 2018.
Shahrivar, S., Elahi, S., Hassanzadeh, A. and Montazer, G., 2018. A business model for
commercial open source software: A systematic literature review. Information and
Software Technology, 103, pp.202-214.
Slowik, P., Fedirko, L. and Lutsey, N., 2019. Assessing the ride-hailing company commitments
to electrification.
Yu, X. and Zhang, B., 2019. Obtaining advantages from technology revolution: A patent
roadmap for competition analysis and strategy planning. Technological Forecasting and
social change, 145, pp.273-283.
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